2—The Daily Collegian Thursday, Jan. 30, 1986
business
WWZU rocks to a new beat
By JUDY FISHER
Collegian Business Writer
Listeners of rock music and adver
tisers alike have a new choice in State
College now that a Lock Haven radio
station has switched its format from
country and western to a hybrid of
popular hits and album rock.
WWZU ZOO-92 FM changed
its format Jan. 1, General Manager
John Lipez said.
The 3,000-watt station in Lock Ha-,
yen is now targetting its program-'
ming to listeners from State College,'
and Williamsport, Lipez said. Penn
State, Lock Haven University and
Lycomingliege are three schools
ZOO-92 wants to have in its listening
audience.
"The country station was aimed at
an older crowd," Lipez said. ZOO-92
is targeting the 18- to 34-year-old age
group.
Program Director Mark Williams
said the change was controversial for
the station's board of directors, but,
''we believe there is a need for such a
radio station."
"We did some market research and
found that people were tired of repeti
tious music," Lipez said, referring to
popular hits and album rock.
The research showed that people
were also tired of repititious commer
cials, he said. So, ZOO-92 has a limit
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of 12 minutes of commercials per
hour, which he said it has not yet
come clOse to and will not go over.
ZOO-92 receives ratings from Arbi
tron, a company which surveys only
twice a year, during the spring and
fall, and also does not survey college
students. Program Director Mark
Williams said the country station's
ratings were good, but now they ex
pect to be better.
`We did some market
research and found
that people were
tired of repetitious
music.'
—John Lipez, WWZU
general manager
They are judging the public's reac
tion now by logging the number of
telephone calls and letters they re
ceive, Williams said.
"I've never seen phone calls like
we're getting now," he said. "I know
there's a lot of talk about us."
Part of the incredible response
included calls from advertisers want
ing to do business with them, Lipez
said.
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Duke Gastiger, owner of The All-,
American Rathskeller, 108 S. Pugh!
St., said some of his employees were
listening to the new station and tipped
his interest in advertising to the new
ZOO-92.
Gastiger said the mix of rock music,
is what listeners like about the sta
tion, adding•that he thinks. the music
will appeal to the 21 and older crowd.
"I think it will become a popular
radio station," Gastiger said.
He said he has spoken to people at
ZOO-92 and they are more flexible with
advertising than other stations have
been.
Bill Landis, program director for,
WXLR, 421 E. Beaver Ave., said he
has not yet felt any competition in
advertising from ZOO-92, and does
not think X-103 will be affected much.
"They're going after a different
target audience," Landis said. "We
appeal to a wider age range 18-49."
The general manager of WQWK,
Clearview Ave, was not available for
Comment.
Although some State College resi-.
dents may have trouble receiving
ZOO-92's signal, the FCC regulations
do not allow the radio station to
increase their wattage. But, Williams
said the station will make the sound
cleaner and punchier.
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tops, bottoms, smallwears
REDUCED TO 1 / 2 PRICE f:
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Thurs. 9:30-8:30
Fri. 9:30-5:30
Sat. 9:30-5:30
Sun. 12-4
Schnapps profits flourish
as new flavors enter market
By W.T..HOLLAND
Collegian Staff Writer
Profits in flavored schnapps were indeed "fruitful" in
1985, sending bartenders in a frenzy to create new
concoctions and consumers to the liquor stores in record
numbers, said experts from the distilled. spirits industry.
Schnapps, the alcohol cordial that traditionally left
American palates smacking only peppermint, spearmint
and cinnamon, has undergone a flavor explosion in the
last three years.
Not since Bailey's Irish Cream came into the markets
has the distilled spirits industry seen such a sales phe
nomenon, said Emil Pavone, spokesman for National
Distillers of New. York. •
His company holds the claim in this country to Original
Peachtree Schnapps. Made by John DeKyper and Sons of
Holland, National Distillers placed DeKyper Original
Apple Barrel schnapps on the market in October 1983, and
sold 5 million bottles during the first year, he said.
'"(Peachtree Schnapps) took our heads off," Pavone
said in comparison. "You wouldn't believe it. In one year
we sold 12 million bottles before any consumer adver
tising began."
That translates to over 1 million cases of Peachtree
produced in the first year and marks the first time in 50
years since the repeal of Prohibition that a million
cases of a spirit beverage was sold by a single distiller,
Pavone said. He said the sales were remarkable for a
product that relied on word-of-mouth for its promotion.
The industry is barred from using electronic advertising
media, Pavone said.
X 36 at e 1,41
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Although figtfres for 1985 have not been tallied, Peach
tree is expected to be the forerunner in the schnapps
market for last year.
• Louisville-based competitor, Mr. Boston Distillers,
entered the market in Fall 1982 by introducing the first
break from traditional peppermint, cinnamon, and spear
mint flavors. Mr. Boston spokeswoman Donna Anne
Hayden said their Apple Schnapps was the first fruit
flavor to hit the industry.
Since then, Mr. Boston has expanded the market with
its best-selling Original Strawberry, Choco-Mint, Root
beer. (it froths, just add Club Soda), and the new Nut-
Cracker, which goes after' the tastebuds of the
"Amaretto-lovers," Hayden said.
"These are some figures that are just going to blow you
away," Hayden said of industry schnapps sales since
1982.
"Sales since that time have increased 500 percent.
That's the biggest increase the industry has seen in a long
Other distillers have tried to get a piece of the action.
According to Market Search, a distilled spirits and wine
trade journal, Hiram Walker Distillers introduced Cider
Mill apple-flavored and Orchard Orange schnapps last
year, and is also expected to make a good market showing
this year. They also introduced Hazelnut, Wild Strawber
ry, and Apricot, according to the trade journal.
Overall schnapps sales statewide edged to 135,000 cases
last year, according to reports supplied by the Pennsylva
nia Liquor Control Board. Of those sales, 111,455 were of
DeKyper Peachtree schnapps. PLCB spokesman Robert
Please see SCHNAPPS, Page 3.
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237-2466
FREE DELIVERY
IMMllidiAßlVlAanlilil I
Gramm-Rudman:
It's that time of the year again. The time of
the year when the members of Congress con
verge on Capitol Hill to begin preparing the
1987 fiscal budget that will take effect on Oct. 1.
• „
4 15 •
• •
.... rtot 741
• • .14,141)
What's the big deal this year you may be
asking?
Well, the big deal is the federal deficit. The
federal deficit has sky-rocketed to an astro
nomical amount of $144 billion. To illustrate
how much the government owes, imagine this
hypothetical situation.
For a person to earn $144 billion, he or she
would have to draw a salary of at least $lOO,OOO
a day for almost 3,945 years!
Just hOw did the federal deficit climb to be
$144 billion? Looking at the past, particularly
President Reagan's past, may give the answer.
Remember David Stockman, the conserva
tive budget director, who said years ago that
the federal deficit should be reduced immedi
ately. At that time the deficit was around $5O
billion, Congress was concerned, but seemed to
be preoccupied and did absolutely nothing
ignoring Stockman. Makes you wonder why he
left?
SPRING
SPRING
Levine Bros. Men's Shop
147 S. Allen St.
•
All Remaining Fall Weight
_ (Begins Thurs. Jan. 30th at 9a.m.)
• Suits
• Sportcoots OFF
• Sweaters
• Sport & Dress Shirts
forrz
• Jackets
• Belts Q Ties
• Topcoats
• Large Selection of Trousers
Extra Jeciallg
• Rummage Table of Shirts & Trousers
values to $42 999
• Selection of Dexter, Puma and
Walk-Over Shoes th OFF
r Open
until 11:30p.m.
147 S. Allen St. ley ine bros.
State College
MEN'S SHOP at the Penna. State University
State College. Pa.
. A
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'4 %.:40 4 4;:;-'.."< igi 1 ' ' i *.k.
IN BEAUTIFUL BOUQUETS
L Icl WEIS
AT WOODRINGS
PICK
ONE UP
TODAY
ONLY
& carry
BEAUTIFUL BOUQUETS
Reduce the deficit, but at what cost to the nation?
Consistent overspending has endangered our
economy and now has put the federal govern
ment into a desperate situation. As a result the
Gramm-Rudman law was passed. The law
reflects a sense of desperation and imposes
new rules, raising the stakes, and uncertainties
in the coming year. Only now the administra
tion is realizing the complex rules of the
Gramm-Rudman law which envisions a bal
anced budget by 1991.
It is currently projected that the federal
deficit would rise to $220 billion at the conclu
sion of this fiscal year. However, one of the new
rules, which takes effect March 1— before the
next fiscal year will make initial reductions
of $11.7 billion.
Due to the large amounts of cuts being taken,
some Congressmen have proposed ways to
increase revenues. Such increases would come
from raising income taxes, introducing a na
tional sales tax, or compiling a value-added tax
the VAT would come from taxing products
during their production.
All of these are interesting ideas especially to
voters. As a result of the Gramm-Rudman law
many Republican politicians in Washington
may find themselves replaced by Democrats
this November.
With all of the rules and regulations con
tained in the Gramm-Rudman law, one would
think that a translator is needed to interpret
this complex garbage. Simply translated, the
people that are currently suffering are going to
•
suffer even more.
Farmers, students, and the middle-class are
going to be the ones caught in the middle of this
budget cutting war. For example, some cuts to
Air
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g'
cn
.1:
SNOW BUSTER SALE!
An Additional .
er o i r - )1117 q
_
(
i y.„„
4/ ( il all
„.i,) Sale Merchandise
, -
lEl\ 0
, .1
New all
0 Spring Merchandise
.010 1
Ladies Fashions and Fine Furs
be made by the Gramm-Rudman law, com
piled from The Wall Street Journal and The
Centre Daily Times, include:
• The Agricultural Service, which handles
most of the farm programs $4.36 million. The
Commodity Credit Corp. which finances the
programs $824.6 million.
• The Department of Education $170.9
million.
• The Farmers Home Administration
$154.3 million.
• Forest Services $71.9 million.
• Foreign Assistence Programs, including
Food for Peace $65.7 million.
• Soil Conservation Service $24.2 million.
• Food Safety and Inspection Service L—sl6.3
million.
• Medicare subject to a limited cut of 2
percent.
Although these are only domestic programs,
the defense budget will also be hit with a $5.85
billion reduction. The interesting point to this is
that the hardest hit will be the Coast Guard and
the Customs Service.
President Reagan's stand against terrorism
is commendable, but sacrificing coastal de
fense to save money could be a costly mistake.
Since we're talking about costly mistakes, I
believe the entire Gramm-Rudman law is a big
mistake. Many people think the nation is cur
rently experiencing economic growth but,
Gramm-Rudman will eliminate all hopes of
further growth.
Let's take a look at how the effects of the law
will affect economic growth.
First, there will be a decrease in personal
income. Due to the budget cuts, many govern
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--'
presenz
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ment employees will be laid off. Secondly,
there will be a decrease in personal spending
nobody will have much money to spend be
cause of a necessary increase in taxes.
Therefore, as a result of the lack of spending
by consumers, businesses will be forced 'to
reduce their production, as demand for their
products declines
Now, that the monetary system is affected,
the Federal Reserve System will take on the
task of stimulating the economy by increasing
the amount of money being circulated, possibly
causing an increase in inflation.
We will then have what I call the "yo-yo
process" -- it has nothing to do with politicians
my description of the state of the economy.
The end result may add up to what could be a
recession, something I'm sure we will all be
looking forward to and waiting with great
anticipation.
Even though Gramm-Rudman spells b-a-d n
e-w-s, there is a chance for a rainbow over the
horizon.
The constitutionality of the deficit-reducing
law is currently being challenged by several
Congressmen. If the law is ruled unconstitu
tional by the U.S. Supreme Court, a fall-back
procedure will take effect, decreasing the defi
cit. But the fall-back procedure probably will
not have such a drastic impact on the economy.
So for now, all we can do is wait and see what
lies in the future.
Paul G. Fero is a junior majoring in finance
and a business columnist for The Daily Colle
gian. His column appears every other Thurs
day.
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The Daily Collegian Thursday, Jan. 30, 1986-3
SCNAPPS
Continued from Page 2.
Ford said the state market last year
only offered five flavors. Now over 40
varieties, including butterscotch, lic
orice, blackberry and cola flavors,
are offered.
Ford said the state liquor control
board is now beginning shipments of
an imported brand of schnapps under
the Bols' label, which boasts an abun
dance of 23-karat gold flakes in every
bottle.
"You just drink (the gold flakes)
right down," Ford said. "I suppose
they consider it as good for you as
iron or the other minerals."
Spokesmen from both National and
Mr. Boston credit a number of Ameri
can trends with the schnappps suc
cess. Taste has become increasingly
important in the American lifestyle,
Hayden said.
Hayden said schnapps targets a
young generation used to consuming
large quantities of sweet, carbonated
beverages.
"This generation, Coke . . . the
Pepsi generation, whatever you want
to call them, is really interested in
flavor."
Pavone claimed that National's
DeKyper line now holds the flavor
edge, due to "a real technological
breakthrough in extracting fresh
fruit flavors at low temperatures," he
said. He added that since National's
schnapps contains only 48 proof alco
hol content or half the alcohol in
comparable amounts of whiskey,
vodka, or gin the new products
appeal to calorie- and alcohol- con
scious Americans.
1 / 2 PRICE